SENATE BILL REPORT

SB 6692

BYSenators Murray, Lee, Williams, Patrick, Rasmussen, Bender and Smitherman

Authorizing civil penalties for violations of state wage payment laws.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):January 22, 1990

Senate Staff:Jonathan Seib (786-7427)

AS OF JANUARY 25, 1990

BACKGROUND:

RCW 49.46 requires Washington employers, with some exceptions, to pay their employees a stated minimum wage.  RCW 49.48 prohibits the withholding or diversion of wages except in limited situations.  Violation of either of these statutes is a criminal act.  Neither statute, however, provides for civil penalties.

RCW 49.46 was last amended by Initiative 518, passed in November, 1988.  The initiative raised the minimum wage to $4.25 as of January 1, 1990, and changed the law's exemption provisions.

SUMMARY:

Upon finding that an employer has violated either Chapter 49.46 RCW or Chapter 49.48 RCW, and in lieu of pursuing criminal penalties, the Department of Labor and Industries may impose civil penalties of not less than $1,000 or an amount equal to 20 percent of the wage violation, whichever is greater, plus interest of up to 1 1/2 percent per month for wages owed.  Criminal penalties are to be pursued only for serious or repeated violations by an employer.

Appropriation:  none

Revenue:   none

Fiscal Note:    requested